According to the Nike’s most recent financial statement as reported on January 5, 2021, total debt is at $9.45 billion, with $9.41 billion in long-term debt and $41.00 million in current debt. Adjusting for $8.63 billion in cash-equivalents, the company has a net debt of $816.00 million.
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Is NIKE too much debt?
Despite its noteworthy liabilities, NIKE boasts net cash, so it’s fair to say it does not have a heavy debt load!
What is NIKE’s cost of equity?
NIKE’s cost of equity is 8.0%.
What is the approximate weight of debt for NIKE?
2022, Nike’s interest expense (positive number) was $205 Mil. Its total Book Value of Debt (D) is $12720 Mil. Cost of Debt = 205 / 12720 = 1.6116%.
How do you find cost of debt?
To calculate your total debt cost, add up all loans, balances on credit cards, and other financing tools your company has. Then, calculate the interest rate expense for each for the year and add those up. Next, divide your total interest by your total debt to get your cost of debt.
What is NIKE’s short term debt?
Liabilities & Shareholders’ Equity
| Item Item | 31-May-2021 | 31-Aug-2021 |
|---|---|---|
| Short Term Debt Short Term Debt | 469M | 477M |
| Current Portion of Long Term Debt Current Portion of Long Term Debt | – | – |
| Accounts Payable Accounts Payable | 2.84B | 2.14B |
| Accounts Payable Growth Accounts Payable Growth | – | -24.72% |
What are NIKE’s weaknesses?
Nike’s Weaknesses – Internal Strategic Factors
- Poor Labor Conditions in Foreign Countries – In the last 20 years, Nike has been consistently targeted regarding their poor labor conditions.
- Retailers Have a Stronger Hold – Nike’s retail sector makes Nike weak due to its sensitivity against pricing.
What is Nike debt to equity ratio?
1 Nike’s capital structure has high equity capital relative to debt, with a debt-to-equity ratio of 0.66, though this figure rose sharply in 2020 due to store closures. 2 The company’s enterprise value grew rapidly in the five years leading up to 2021, driven almost entirely by the appreciating value of its equity.
Is Nike highly leveraged?
NIKE’s financial leverage last quarter was 2.6x. NIKE’s financial leverage for fiscal years ending May 2018 to 2022 averaged 2.9x. NIKE’s operated at median financial leverage of 2.6x from fiscal years ending May 2018 to 2022. Looking back at the last five years, NIKE’s financial leverage peaked in May 2020 at 3.9x.
What is Nike’s brand equity?
Nike has retained the title of the world’s most apparel brand for the 7th consecutive year, despite recording a 13% brand value drop to US$30.4 billion. The brand still maintains a considerable lead over second-ranked Gucci, with a brand value of US$15.6 billion, down 12% from 2020.
What is the amount of NIKE’s long term debt in 2019?
NIKE’s long-term debt hit its five-year low in May 2019 of $3.464 billion. NIKE’s long-term debt decreased in 2018 ($3.468 billion, -0.1%), 2019 ($3.464 billion, -0.1%) and 2022 ($8.92 billion, -5.2%) and increased in 2020 ($9.406 billion, +171.5%) and 2021 ($9.413 billion, +0.1%).
What is a good debt-to-equity ratio?
What is a good debt-to-equity ratio? Although it varies from industry to industry, a debt-to-equity ratio of around 2 or 2.5 is generally considered good. This ratio tells us that for every dollar invested in the company, about 66 cents come from debt, while the other 33 cents come from the company’s equity.
What is adidas debt?
Adidas AG long term debt for the quarter ending March 31, 2022 was $2.918B, a 2.9% increase year-over-year. Adidas AG long term debt for 2021 was $2.918B, a 2.9% increase from 2020. Adidas AG long term debt for 2020 was $2.835B, a 58.71% increase from 2019.
What does cost of debt tell us?
The cost of debt measure is helpful in understanding the overall rate being paid by a company to use these types of debt financing. The measure can also give investors an idea of the company’s risk level compared to others because riskier companies generally have a higher cost of debt.
What is the cost of debt in WACC?
WACC Part 2 – Cost of Debt and Preferred Stock
The cost of debt is the yield to maturity on the firm’s debt and similarly, the cost of preferred stock is the yield on the company’s preferred stock.
Why is it important to calculate cost of debt?
Businesses calculate their cost of debt to gain insight into how much of a burden their debts are putting on their business and whether or not it’s safe to take on any more.
What are NIKE’s long term liabilities?
NIKE total long term liabilities for 2022 were $14.31B, a 6.46% decline from 2021. NIKE total long term liabilities for 2021 were $15.299B, a 1.97% increase from 2020. NIKE total long term liabilities for 2020 were $15.003B, a 120.28% increase from 2019.
Does NIKE have more assets than liabilities?
NIKE total liabilities for 2021 were $24.973B, a 7.24% increase from 2020. NIKE total liabilities for 2020 were $23.287B, a 58.66% increase from 2019.
Compare NKE With Other Stocks.
| NIKE Annual Total Liabilities (Millions of US $) | |
|---|---|
| 2020 | $23,287 |
| 2019 | $14,677 |
| 2018 | $12,724 |
| 2017 | $10,852 |
How does NIKE use capital?
Capital resources in Nike factories include the sewing machines they use to make the shoes. Also the actual factory buildings are Capital resources. These are both physical capital.
What are Nike’s biggest threats?
Threats. For threats, Nike has to look at all directions: tax, market competition, and product counterfeiting.
Does Nike still use child labor?
Nike admits it cannot ensure that none of its contractors will use child labour, and says the issue is the “most vexing” problem it faces. “Our goal… is to continue to do everything we can to eradicate child labour in our contract factories, but we can be certain that cases will occur,” the report states.